Improving a credit score after a foreclosure can be a particularly stressful process. After a foreclosure, it can be near impossible to receive bank loans, credit cards, and, perhaps most importantly, rent or buy a home. In a credit-dependent world, improving a credit score can make a drastic change in someone’s life after a foreclosure. Tiffany Bucher, Foreclosure Excess Proceeds founder, has seen first-hand the lasting negative effects foreclosures have on clients and their financial recovery. For many years, Tiffany Bucher and the Foreclosure Excess team have helped clients navigate a foreclosure’s financial strain and recover money owed to their clients after foreclosure proceedings. Today, Tiffany Bucher of Foreclosure Excess Proceedings will discuss how people can help rebuild their credit scores after experiencing a foreclosure.
Identify The Cause of the Foreclosure
Before being able to rebuild credit, a borrower must identify the reason they were previously unable to pay their mortgage payment. Without understanding that reason, the likelihood of debt continuing to increase will remain high. Taking the time to research spending history and total finances will give a borrower a better understanding of the financial situation and prevent future loan defaults.
Pay Bills On Time, Twice a Month
The quickest and most efficient way to build credit is to pay bills on time. FICO scores are calculated by looking at five different categories, payment history, amounts owed, length of credit history, new credit, and credit mix. However, these categories are not evenly taken into account while measuring the final score. Payment history takes priority and makes up 35% of your FICO scores calculation. For this reason, it is essential to pay bills on time each month. To make sure bills are paid on time, many people will set up automatic payments by linking their bank accounts to the bill. However, if the account’s funds are low, this strategy can backfire and go unnoticed for months, hurting a person’s credit score and racking up late fines. To quickly rebuild credit, it is essential to find a dependable, long term payment plan that works for the individual.
Apply for a Secured Credit Card
On average, a foreclosure can drop a credit score anywhere between 100-160 points. Many banks and credit card issuers do not accept borrowers below a 550 credit score; because of this, foreclosures often affect someone’s ability to be approved for a new credit card. For this reason, Tiffany Bucher of Foreclosure Excess Express suggests that borrowers seek out a secured credit card. A secured credit card only requires a deposit and typically has a spending limit that matches the deposit. Secured credit cards are a safe, effective way to build credit while reducing the likelihood of debt.
Sifting through the stress of a foreclosure proceeding can be exhausting for property owners. These individuals have struggled with finances and were left with no choice but to sacrifice their home as a result. What many of these people don’t know -- and what Tiffany Bucher of Foreclosure Excess Proceeds seeks to show them -- is that they are likely entitled to a portion of the foreclosure auction price. The monthly mortgage payments these people made for years gave them equity in their home. When that home is sold as a foreclosure, it’s possible for bids to exceed what was left on the loan. This is when Tiffany Bucher of Foreclosure Excess Proceeds steps in to help clients. Those looking to learn more about her and the process of recovering these funds are encouraged to review the information below!
Foreclosure rates in the U.S. are mercifully not as high as they were during the 2008-09 financial crisis, but there’s still a storm brewing. According to a September 2020 article from CNBC, 3.7 million home loan borrowers were taking advantage of private and federal forbearance programs and the total of “seriously delinquent mortgages” doubled between May and June of this year. The “bailout” plans available here included delaying payments and/or extending the terms of their repayment agreement typically set at closing. The article goes on to say that during the Great Recession, “close to 10 million Americans lost their homes, either through foreclosure or bank-approved short sales. The housing market is still recovering from that.”
We don’t know what 2021 will bring, but we do know that these are difficult figures to accept with all the other troubles going on in the world, says Tiffany Bucher of Foreclosure Excess Proceeds. Anyone who has ever owned a home knows that the structure is more than a place to lay your head at night. It’s a financial nest egg and a place of comfort and convenience. Losing it to foreclosure and watching it be auctioned off for the highest price can be rough. However, the excess proceeds claim process can help level the playing field. This measure is guided by attorneys, real estate and financial experts who know how to follow the proper guidelines. The net result is obtaining money that rightfully and legally belongs to the former homeowners.
The bidding process at a sheriff’s sale, auction or trustee’s sale can get highly competitive and with the benefit of deep pockets, a home can be sold for much more than its value on the mortgage loan papers. This is why Tiffany Bucher, Foreclosure Excess Proceeds’ managing partner, says it’s best to reach out and learn more. This process can prove to be the start of your next financial chapter in life.
Tiffany Bucher Foreclosure Excess Proceeds
Learn more about the recovery process on this website!